Time Warner Inc (TWX), The Walt Disney Company (DIS): Don’t Let Your Emotions Get in the Way

DreamWorks grabs my emotions

I know that Dreamworks Animation Skg Inc (NASDAQ:DWA) is based on imaginary stories–that aren’t real, so my mother says. But when I hear the name, I think about movies like “Shrek,” “Kung Fu Panda,” and “Puss in Boots.” These movies don’t really cater to my generation, but they have a certain amount of appeal when watching them with the family.

However, leaving my emotions aside, there are really several factors that make me not want to buy this stock, even though I love the movies this company makes. First, Dreamworks Animation Skg Inc (NASDAQ:DWA) continues to make failed attempts at building revenue. The company only averages five films every two years, which is not enough to generate significant revenue when talking about titans like The Walt Disney Company (NYSE:DIS). Furthermore, the critics often lambaste many of the company’s films, and this results in lower financial gains.

What to do with these conflicting emotions?

Investors need to put their affiliation for a certain production company to the side. No matter how much you loved “The Little Mermaid,” she is not necessarily going to have you swimming in profits. You need to look at the financial components of these companies before deciding to place a stake of your future in them. After all, that is what you are doing when investing in a stock. If you make a good purchase, the entire outcome of your life could be different than if you don’t buy that stock. That puts a lot of pressure on you, but you must never let your emotions play a role in determining what stock you buy. And, I can say with relatively strong confidence that Time Warner both satisfies the emotions of investors and the sound financial decisions that they need to make.

The article Don’t Let Your Emotions Get in the Way originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends DreamWorks Animation and Walt Disney. The Motley Fool owns shares of Walt Disney. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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